PRESS: Chukotka may buy RusHydro extra shares for infrastructure proj

MOSCOW, Dec 20 (PRIME) -- Russia’s Chukotka Autonomous District can buy additional shares of hydro power giant RusHydro to support construction of power infrastructure in the region, Kommersant business daily reported on Wednesday.

The Industry and Trade Ministry suggested the government to provide an about 10 billion ruble non-repayable subsidy to the region from the federal budget in 2018–2020 to construct power infrastructure for projects in the Baimsky copper area, the daily reported.

The ministry developed an order of provision of the subsidy to the region, and the region will be able to spend money on organization of provision of power to ore mining projects. The authorities of the region may buy stakes in companies that implement projects for infrastructure construction, the daily said.

A representative of the ministry did not specified in which companies the region may invest the money. “The subsidy is non-repayable, but the money that ore mining companies pay for power will be reinvested to complete implementation of a plan for power distribution of the region and of its social facilities,” the representative said.

On Tuesday, RusHydro CEO Nikolai Shulginov said the company may issue 13–14 billion rubles of additional shares in next several years, and it needs to raise money to finance its investment program and construction of the Pevek–Bilibino 110 kilovolt power transmission line in Chukotka.

But the representative of the company told Kommersant that the government was yet to approve parameters of an additional share issue, including a possibility of Chukotka buying the shares.

(58.6940 rubles – U.S. $1)

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